{"id":148561,"date":"2019-05-28T10:30:36","date_gmt":"2019-05-28T14:30:36","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=148561"},"modified":"2019-05-30T07:00:16","modified_gmt":"2019-05-30T11:00:16","slug":"corbyns-second-brexit-referendum-shift-could-spook-markets","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/05\/corbyns-second-brexit-referendum-shift-could-spook-markets\/","title":{"rendered":"Corbyn\u2019s second Brexit referendum shift could spook markets"},"content":{"rendered":"
May 28, 2019<\/div>
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By George Prior<\/strong><\/p>\n

A positive impact of a second Brexit referendum on financial markets would be offset by a win by the UK\u2019s opposition Labour party, warns the CEO of one of the world\u2019s largest independent financial advisory organisations.<\/p>\n

The warning by Nigel Green, chief executive of deVere Group, which has $12bn under advisement, comes as Labour\u2019s Jeremy Corbyn has vowed to back a second referendum on any Brexit deal following his party\u2019s disastrous EU election result.<\/p>\n

Mr Green affirms: \u201cThe uncertainty surrounding Brexit is having a real impact on business in the UK, the EU, and those around the world that trade internationally.<\/p>\n

\u201cThis uncertainty has created a tangible lack of confidence, resulting in falling investment, spending and recruiting across Britain.<\/p>\n

\u201cFollowing MPs\u2019 abject failure to so far find a way forward through the impasse, the next move has to be to have a second Brexit referendum in order to protect jobs and secure long-term, sustainable economic growth.\u201d<\/p>

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He continues: \u201cA second referendum would likely be welcomed by financial markets for two reasons.<\/p>\n

\u201cFirst, it gives MPs a clear, unequivocal message either way, breaks the grinding deadlock, and reduces ongoing uncertainty.<\/p>\n

\u201cAnd second, it would increase the chances of a softer Brexit, which would have the effect of producing a relief rally in Sterling, UK financial assets, and also a\u00a0mini spurt\u00a0in economic activity in Britain, as delayed household and business spending is unleashed.\u201d<\/p>\n

Mr Green goes on to add: \u201cA confirmatory vote of this kind will likely prove to be an appealing option for much of the electorate in the UK.<\/p>\n

\u201cTherefore, Mr Corbyn\u2019s new approach will in the eyes of many voters make his Labour party more electable in a general election than it has been in a long while.\u00a0 And this prospect will spook financial markets.<\/p>\n

\u201cAs such, any positive impact of a second Brexit referendum on financial markets would be offset by a win by Jeremy Corbyn\u2019s Labour party.\u201d<\/p>\n

Earlier this month, the deVere boss noted: \u201cSince the beginning of the year a large and growing number of clients are telling our advisers that for their wealth they fear the damaging impact of a Jeremy Corbyn-led government more than Brexit.<\/p>\n

\u201cHigh-net-worth individuals in Britain and wealthy international investors with UK assets and business know that they will be hit by Mr Corbyn\u2019s tax hikes on wealth, income and inheritance.<\/p>\n

\u201cAs such, more and more of them are seeking advice on established, legitimate overseas opportunities to create, build, and importantly, protect their wealth.\u201d<\/p>\n

He concludes: \u201cIf it had been the government and not Mr Corbyn who shifted stance on a second referendum, the markets could have been expected to react far more favourably.\u201d<\/p>\n

About:<\/strong><\/em><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior A positive impact of a second Brexit referendum on financial markets would be offset by a win by the UK\u2019s opposition Labour party, warns the CEO of one of the world\u2019s largest independent financial advisory organisations. The warning by Nigel Green, chief executive of deVere Group, which has $12bn under advisement, comes […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-148561","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=148561"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148561\/revisions"}],"predecessor-version":[{"id":148562,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148561\/revisions\/148562"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=148561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=148561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=148561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}